Advanced

Employment Protection and Distribution of Labour Market Opportunities

Wiberg, Simon (2006)
Department of Economics
Abstract
This essay examines how different levels of employment protection can affect labour demand for workers with different characteristics. This issue is analysed theoretically utilising the theory of fixed costs of labour and insider-outsider theory. The main conclusion from this analysis is that strict employment protection can be expected to have a disproportionately negative impact on the demand for young workers and immigrant workers. The main conclusion from the theoretical analysis is also examined empirically in a comparative study focusing on Sweden and Denmark. The rational for this comparison is that, while Sweden and Denmark are similar countries, employment protection is relatively limited in Denmark and in Sweden employment... (More)
This essay examines how different levels of employment protection can affect labour demand for workers with different characteristics. This issue is analysed theoretically utilising the theory of fixed costs of labour and insider-outsider theory. The main conclusion from this analysis is that strict employment protection can be expected to have a disproportionately negative impact on the demand for young workers and immigrant workers. The main conclusion from the theoretical analysis is also examined empirically in a comparative study focusing on Sweden and Denmark. The rational for this comparison is that, while Sweden and Denmark are similar countries, employment protection is relatively limited in Denmark and in Sweden employment protection is rather strict. The evidence presented is far from conclusive, but the results of the comparative study are in accordance with the theoretical analysis. (Less)
Please use this url to cite or link to this publication:
@misc{1335051,
  abstract     = {This essay examines how different levels of employment protection can affect labour demand for workers with different characteristics. This issue is analysed theoretically utilising the theory of fixed costs of labour and insider-outsider theory. The main conclusion from this analysis is that strict employment protection can be expected to have a disproportionately negative impact on the demand for young workers and immigrant workers. The main conclusion from the theoretical analysis is also examined empirically in a comparative study focusing on Sweden and Denmark. The rational for this comparison is that, while Sweden and Denmark are similar countries, employment protection is relatively limited in Denmark and in Sweden employment protection is rather strict. The evidence presented is far from conclusive, but the results of the comparative study are in accordance with the theoretical analysis.},
  author       = {Wiberg, Simon},
  keyword      = {Insider,employment protection,labour economics,outsider,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Employment Protection and Distribution of Labour Market Opportunities},
  year         = {2006},
}